A HOSPITAL trust which pledged to save £40m over three years has reported a better-than-expected financial performance since setting out its plans.

North Tees and Hartlepool NHS Foundation Trust - which runs Stockton’s University Hospital of North Tees and the University Hospital of Hartlepool - generated an income of £274.5m in 2011/12 against a plan of £268.4m.

The figure saw the trust achieve an “operational surplus” of £3m - against a planned £2m - despite its costs being £2m more than expected at £259.5m.

The hospital trust - which set out its saving plan in November - generated £235m from primary care trusts (PCTs), the bulk of its income, which commissioned services.

Most of the that income came from Stockton or North Tees PCTs, which paid £112m to the trust for its services.

Hartlepool PCT paid £72m, while Middlesbrough handed over £3m.

And Redcar and Cleveland PCT paid out £2m for healthcare services provided to patients across the NHS Tees area.

Other operating income came from services provided to other trusts, training and education, and “miscellaneous fees and charges”.

Lynn Hodgson, director of finance, information and technology, also reported the trust’s financial performance for April to the board of directors.

On April 30, the trust had a surplus of £176,000 for the financial year so far - which is “about £40,000” behind what it planned for the period.

She said: “Overall, we are slightly behind target for month one, but I think it is too early in the year to raise that as a significant concern for the board.”

Paul Garvin, inset, the board’s chairman, added: “It’s good to see that we maintain a sound financial position.

“We are also maintaining a good operational performance and good standards of patient safety and quality, so in the round, we are actually keeping the organisation stable - which is a good position to be in.”